It’s officially Spring and with the season comes spring cleaning. While I’m starting a little late this year, it feels good to get my house cleaned up and organized after the long winter. What many people might not think of is doing the same with finances…and it’s important because things change. Here are 4 tips to help you spring clean your finances:

Ditch your debt / pay it down faster

To save you the most money, start with credit cards or other loans with the highest interest rate. Make higher than the minimum or extra payments to pay it off faster. Or if you need more wiggle room in your budget faster, start with the lowest balance and pay extra to get rid of that debt sooner. Once you’ve paid off the debt of choice, put that payment toward the next highest interest or lowest balance – again, depending on your goal. Another great option is the Debt Management Plan as it will help you pay off debt faster and save money.

Update your budget

Our income, how much we spend, and what we spend our money on can change a lot and sometimes it happens overnight. So compare your income and expenses again to see what your current spending plan looks like. And don’t forget to include those pesky periodic expenses that are forgettable because they’re once or twice a year – like vehicle tabs/maintenance, annual memberships, vet bills, etc. Once you’ve updated, cleaned up, or created your realistic budget, determine what you can save each month. If you haven’t done so in the past, start now and make it automatic. Try to set aside a certain amount every month automatically deposited in a separate savings account specifically for emergencies.

Go paperless, automate, and unsubscribe

If you are still getting any bills in the mail, consider switching to paperless where you receive the bills via email. Then set up automatic payments as long as it’s realistic for you. That will keep mail/clutter from coming into your house so you don’t have to worry about shredding or filing paperwork. Going paperless is great, but are you still receiving a lot of emails you don’t really need from store after store? Go through those store emails and unsubscribe from what you really don’t need. If you save a lot of money by using coupons from one particular place, great. But remember just because it’s on sale doesn’t mean it’s saving you money if you don’t really need it. So ditch those emails that truly aren’t saving you money.

Clean and organize

If you’re still keeping paper documents, shred what you don’t need. Organize what you keep and consider ditching paper if you are able to instead save the documents electronically. Typically it’s a good move to keep pay stubs for a year. However, you may be lucky like me and have all your pay stubs saved online through your employer. I don’t have any paper pay stubs in my house because of it. And it’s great because I hate getting a lot of mail and having to file or shred things. Regarding tax documents, it’s recommended to save them for about 3 years. So if that’s the one file you have to keep, that’s not bad.

So get started now to get your finances in order. If creating a budget seems a little daunting, the good news is there is free and trusted help out there. LSS Financial Counseling is a MN nonprofit that offers free budget, credit, and debt counseling to anyone. Give us a call today at 888.577.2227 for your free session or get started online at any time of the day.

Author Elaina Johannessen is a Program Director with LSS Financial Counseling.

Since I’ve recently gotten a new puppy, pets are on my brain. So here’s a flashback Friday post from Ashley about keeping your pet expenses down.

My husband and I have not one, but two beloved pets. A yellow lab named Cashmere and a black lab named Sadie. These giant kids occupy a huge spot in our hearts and will forever be an equal part of our family. And when your dog is a part of the family it can be hard to think of ways to save money and still give them the best care possible. Their needs are so basic, how on earth could you reduce or limit anything? Or are there even ways to save on pet expenses? Though I was skeptical at first (owning two dogs of my own), I started looking for savings and found that there are a few ways that you can reduce the cost of having a dog and maybe even become a better dog owner in the process.

Start with the food

When choosing the best food for your dog you are looking for nutrition and high quality. Compare brands to make sure that you are getting the best food for your money. Once you have decided what you are going with, compare prices. Stock up when you find a great deal. Some pet and feed stores have reward programs that will get you a discount, but make sure that it is worth it. Sometimes the food can be more expensive at these places. Also check out online ordering options. You may be able to save more that way.

Brush Brush Brush

Brushing your dog once a week will help to keep trips to the groomer fewer and less expensive. The more work the groomer has to do the more the visit will cost. Another tip is to choose an odor-free and bacteria resistant, easy to clean collar. When your dog starts to smell…well…like a dog, it could be their collar that is carrying that smell. In addition to brushing their coats, their teeth could use some attention, too. Regular brushing of your dog’s teeth can prevent illness (and who doesn’t love a challenge?).

Get moving

Dogs need regular exercise in order to stay healthy. Not only does it keep them at a healthy weight but it can have a positive impact on their digestion, mood, behavior, and even help them living longer. It is also a great way for you as the owner to get some exercise as well.

Preventative care

Be sure to take your dog in for their annual visit as prevention can save a lot of money. However, you know your dog so if there are signs that something isn’t right in between regular visits, take them into the vet right away. This may prevent the problem from getting worse and you can avoid a possible trip to the emergency vet which can be very expensive. In addition, try to keep them from eating what you eat. There are all kinds of foods that we eat that are potentially harmful to dogs (grapes, onions, and chocolate to name a few) so it’s best to stick to dog food and treats.

While regular vet trips are cheaper than emergency vet, it can still add up. So to offset this cost, start setting aside money monthly so that when the vet appointment comes up you don’t have to scramble to find money or charge it.

Nothing says love like homemade

There are all kinds of fun blogs and websites out there that teach you how to make dog safe toys and treats that are easy and very inexpensive. Keep in mind you don’t want to make dog toys out of something you have worn and smells too much like you. It might give your dog the impression that they are free to chew on thing that you wear. You will end up spending the money you saved on new socks!

At LSS we are all about finding ways to save money from pet expenses to entertainment to utility bills and more. Just think if you can cut out or reduce one expense, like buying expensive dog toys, you could put that extra money toward debts, add it to emergency savings, or save it for future vet appointments. Or maybe you and your pups could take a camping trip or go to the beach for a swim. What would make your pups happier?!

If credit cards are making it tough for you to save money, you may benefit from a free financial counseling session. Call us for your free session to determine the best options to pay down your cards faster and save money. Or GET STARTED ONLINE NOW at your convenience. Take action now to improve your finances.

Author Ashley Hagelin is a Certified Financial Counselor at LSS and specializes in Reverse Mortgage Counseling and pet ownership!

Summer is an amazing time to make long-lasting summer memories with your kiddos.  Studies find that children get more enjoyment out of quality time and building memories than any material item.  How wonderful is that?  Certainly taking an amazing family trip would be a good way to build memories, but it is not the only way.  Here are few things you can do to connect over summer vacation without breaking the bank.

Work quality time into the daily routine

During our cold, long Minnesota winters we all spend a lot of time indoors which often equals more TV and smartphone time.  It is so easy to get into a habit of distraction; the family may all be in the same room but not looking or speaking to each other.  Summers are short so it is a great time to break those habits and change your daily routine. Here are some ideas on how get the most out of your summer days..

• Take a summer break from social media. Remove those apps from your phone to help you break the habit. This will reduce the time you spend scrolling through the daily posts, giving you more time to enjoy those around you.
• When you get home for the day, put the phone away. Having your phone with you all the time makes it easy to check work emails or checking in on social media.
• Take a daily family walk. This is a triple win! It is quality time, exercise, and you are getting a daily dose of summer weather.  Bonus: this will be the dog’s favorite time of day.
• Eat dinner outside…it is that simple.

Camp Out

Whether you go to a campground, remote campsite, or just pitch a tent in the back yard, you are camping. Yes, camping can be a lot of work but what a great way to get the whole family to pitch in!  Not only are you spending time together but you are also working on some common goals for a warm dry tent and cooking a dinner over an open fire.  If you don’t have the equipment, no problem.  You can rent it from outdoor stores like REI and local rental shops, not to mention borrowing some from family and friends.  All in all it is a low-cost getaway!

Taking a Trip?  Plan Ahead…

If you are taking a trip here are some ways to reduce costs and prevent unexpected expenses.  These tips will save you headaches, money, and time.

• Start saving now. Having extra money set aside will prevent you from charging your vacation, saving you the interest and the monthly credit card payment.
• Make your reservations in advance to make sure that you are getting the best deals and discounts.
• If you are taking a road trip get an oil change and your car looked over before you head out.
• Pack road food; this will save you money and time. You can also work some picnics into your trip.
• Make a packing list and double check it! This will keep you from taking the time to run to the store to and the money to buy items you forgot at home.

Give Back

Make volunteering a part of your family’s summer routine.  Bonding with your family while helping others or improving the environment will have a powerful impact on your children.  There are so many ways to give back.  You can contact your local United Way, American Red Cross, and/or church to find what opportunities are out there.  You can also volunteer right in your neighborhood by helping your neighbor care for their lawn or walk their dog.  The options are endless and so is the need!

Garden

A family that grows together stays together!  Whether it’s a beautiful flower garden or a fresh vegetable garden, growing and tending to a garden as a family has so many benefits.  You are creating something beautiful and healthy while enjoying the outdoors and getting some exercise.  You are also giving your young gardeners some very important life skills.  Plus, you can even cut your grocery budget with the food from the garden!  Then you can use that money for even more fun activities.

Spending time with loved ones over summer vacation is more important than spending money. What else can you do with your family or friends that won’t cause you to bust your budget? For more tips, check out 4 Simple Ways to Save Money and 7 cheap or free ways to have family fun.

Author Ashley Hagelin is a Certified Financial Counselor with LSS Financial Counseling. She specializes in Foreclosure Prevention and Reverse Mortgage Counseling.

Communication between you and your kids about your finances is very important. Keeping your finances “hush-hush” may do more harm than good. Your kids deserve to know the truth, but maybe not the whole truth! When it comes to money, I think there are some things that kids—particularly young ones —aren’t ready to process and frankly, don’t need to know. So what do you tell and what don’t you tell your kids?

DO tell your kids:

1. Where your money comes from

   Allowing your kids to understand where money comes from helps them to understand the importance of work. I’m sure your children would love for you to stay at home with them every day, but telling them where the money comes from teaches them that you go to work to earn money and pay for things you need.

2. How much stuff costs

   I’m almost positive that your kids have no idea how much your phone bill, car insurance, or mortgage may be and they don’t need to. But they should know how much a carton of eggs or a gallon of milk costs. By telling your kids how much things are, they likely will take better care of their belongings and understand how much money must be spent on every day essentials.

3. That not all families have the same amount of money

   There are some kids out there that realize this very early on when they see a difference in the neighbor’s bike, clothing, and bedroom compared to their own. Based on when you think the right time is, you may want to talk to your children about the difference in incomes that families may have—and how that difference means that some families may not have as much as others do.

DON’T tell your kids:

1. How much you make/who earns what

   Your family may be living paycheck to paycheck or you may be living quite comfortable, but your earnings are something that you should be keeping to yourself. Kids can confuse your earnings/bigger salary with a bigger contribution to the family which often isn’t the case. The last thing you want is your kids flaunting your earnings on the playground at school, so this may be one of the things you keep “hush-hush”.

2. How much you pay your babysitter

   Allowing your kids to know how much you pay the sitter gives them an “informational upper hand” that could potentially undermine the caretaker’s authority. No sitter ever wants to hear the words, “You have to do _____, because my parent(s) pay you $___!” When hiring a babysitter or nanny, keep the terms of the deal confidential as the kids don’t need to know.

3. If someone owes you money/how much you owe someone

   Your kids may wonder where your money may go or where it comes from at times and it’s okay to tell them, but be wise in your words. You may be upset because a family member owes you money and has chosen not to pay you back by the agreed time. If you need to vent be sure to do this quietly and far from your kids’ receptive ears. The last thing you want is your kids misunderstanding financial situations and incorrectly speaking to friends or relatives about them. Money is often the root of family dysfunction so it’s best if you don’t involve the kids.

Some of these may resonate with you, while others may not. Either way, start teaching your kids early about finances while leaving out some of the unnecessary details.

For more tips, check out Protecting your kids from identity theft and How to help your child establish good credit.

Written by Darby Eilefson, Intern with LSS Financial Counseling.

Times can be tight and people get low on cash. If you ever get asked for money from a loved one, here are some tips to help you decide to do it or not. And if you do, this post has great advice on creating the actual borrowing arrangement.

You’ve probably heard horror stories about folks who’ve lent money to friends or family members and got burned for their generosity. While this shouldn’t stop you from lending money to your loved ones, below are a few tips that may prevent anger and resentment should your arrangement fall apart. If you’re going to hand over money to someone, it’s best to be prepared for whatever the outcome may be.

Talk to yourself first

Take some time to think about whether or not you expect to be repaid. This is the number one way to avoid misunderstandings, hurt feelings, and damaged relationships!

1. Can I afford this?

   If you don’t expect to see the money again and really can’t afford to gift the money, then the best answer is “no.” Another solution may be to gift a portion of the money requested if the borrower can find the rest elsewhere.
   On the other hand, if you can afford to give the money but still don’t expect to be repaid, then make it an outright gift (and bless you for your charitable nature!)

2. How much can I afford to lend?

   Often, people lend money regardless of whether or not it fits their own finances. A word of caution – don’t let your loved ones financial problems become yours too. Regardless of how careful you may be with this transaction, you may never see this money again. Therefore, don’t lend out part of your kids’ college fund, or dip into your retirement accounts to make a loan you can’t afford.

3. How will this affect my relationship with the borrower?

   Whether you say no to the borrower or go forward and lend the money, either decision is bound to have an impact. It’s not unusual for close relationships to fall apart or become strained over money when things don’t work out. Consider how you’ll handle any fallout with your loved one if you don’t get the money back.
   By lending money, you may also be prone to evaluating the borrower’s financial decisions and priorities. For instance, while they may tell you the money will be used for an important financial matter, press for actual details. The last thing you want to find out is the money was used to buy a new 60 inch TV or a gambling trip to Vegas!

Now talk to the borrower

The potential borrower is a loved one, either your friend or family member. If you’re being approached for money, it’s important to be able to discuss the loan honestly (although this may not be an easy conversation to have.)

1. Why do you need the money?

   Although you may put it more delicately, you want to make sure this is a one-time issue like a car breaking down or an unexpected medical bill. You don’t want to feed a poor money management lifestyle if it won’t solve the problem.

2. Are there other options?

   Has the borrower looked into other options? What are they, and why don’t those work? For example, even if their car needs major repairs, maybe they can carpool to work with co-workers, borrow a car temporarily until they can save for repairs, or use mass transportation. While none of these options are ideal, the borrower should show some problem-solving initiative other than simply asking for money.
   Another option is to talk with one of LSS’ certified financial counselors to review their financial situation. This may be especially important when it looks like the money crisis is bound to happen again due to poor financial skills.

3. What is an affordable payment plan?

   While the payment amount should be workable for both of you, you should determine a figure that fits the borrower’s budget. A monthly payment may make it easier for the borrower to stay current by getting into the habit of regular installments.
   For more convenience to the borrower (and greater certainty for you), consider having the payments automatically withdrawn from a borrower’s bank account.

Write up a loan agreement

These days it is fairly easy to find sample documents online to help you craft your arrangement in writing. So, take a look to see if any of these work for you and simply change them as needed.

On the other hand, the document does not have to be complicated or full of legalese. In fact, the simpler and more straight forward it is, all the better! If there’s ever a problem, you don’t want the borrower claiming they didn’t understand the agreement.

Think about the terms of the agreement such as the loan amount, payment amounts and frequency, repayment duration, the amount of interest being charged, and consequences for missed payments or loan default. If your plan is to be able to prove your loan agreement in court, you want the specifics spelled out.

Consider carefully collection activities

If the borrower starts missing payments, reach out to try to find a workable solution for you both. If unsuccessful, you may have to talk to a lawyer or take the borrower to court. But be sure to ask yourself if trying to collect is worth the time, additional money, and frustration for you. Sometimes it is instances like these that become the best life lessons for us all!

At LSS, we empower people to take control of their finances and conquer their debt. Trust me when I say we understand that overcoming debt is a tough challenge, but we know you can do it.

Our Debt Management Plan (DMP) can help you repay your debts and save money in interest. A DMP consolidates your monthly bills into one simple payment so you can start paying off those debts and return to financial health faster. Give us a call today at 888.577.2227 for your free financial counseling session or click here to get started online!

By Barbara Miller

Warm weather is finally upon us! So it’s time to think about entertaining…if you’re into that kind of thing. If so, here are five simple ways to save money on your summer party this year.

1. Have a potluck

   The best way to save money when you’re inviting people over is to make your summer party a potluck. Ask friends/family to bring a dish or dessert to share. Better yet, if you’re planning to make burgers or brats, let people know that you’ll provide the meat. Then suggest someone else bring buns and/or condiments. And just a personal note…I actually prefer suggestions on what to bring to potlucks.

2. Make it BYOB

   Beverages can also add up when you’re buying a lot of things, depending on what you might plan to serve and how many people you’re inviting. So to save money, ask your friends to bring their own. This is kind of the norm anyway lately so no one will be offended. Or if you prefer, make something cheap for everyone and if they want something different, they can bring what they choose. Lemonade or tea (or both – an Arnold Palmer) is a great and typically cheap beverage to make that most people will like.

3. Buy in bulk

   For bigger parties you may want to shop somewhere nearby that has bulk items. This will help keep costs down and might even help you decide what you want to serve at the party. Think meat, buns, beverages, fruit, veggies, etc.

4. Keep decorations simple

   If you’re able to, use what you already have. Grab some old string lights and put it around your deck railing or a tree for example. Or use canning jars and put in some tea lights. If you have flowers you can pick, grab a vase or two and decorate simply with your own flowers. Or just buy some oranges or apples and put out a big bowl of fruit. These are just a handful of ideas to keep it simple. For more tips, check out How to beautify your outdoor space for less.

5. Buy cheaper items/hit the local dollar store

   If you want to decorate, but don’t have anything at home you can use, check out your local dollar store for cheap ideas. But don’t overdo it…you don’t want to defeat the purpose of shopping to save money by buying twice as much as you normally would. Also, if you’re not big on doing dishes, find cheap/bulk paper plates, cups, etc. Or, that might be a nice way for a guest to contribute to the party that doesn’t really like to cook or is not sure what to bring.

Just because you want to entertain some friends doesn’t mean you have to break the bank. Plus, most of the time people just want a reason to get together; they aren’t expecting a gourmet meal. So keep it simple and enjoy yourself this summer while saving some cash.

Author Elaina Johannessen is a Program Director with LSS Financial Counseling. LSS helps people conquer their debt, improve their finances, and achieve financial stability and goals.

Here’s a helpful and informational piece by Mary Ellen on what to do before you lease a car. Happy Flashback Friday!

Time for a new car.  The ads on TV touting low monthly leases are enticing, especially when you compare them to a monthly payment for a new car.  But, is it really a good idea?  As usual, the answer is, “It depends.”

One:  Evaluate your transportation needs

First, you need to know how many miles you typically put on your car.  Lease agreements limit the number of miles, often 12,000 or 15,000 annually.  If you put on more miles, you will increase the cost of leasing, either by paying for additional miles up front or a hefty and painful fee at the end of the lease.

Then ask yourself what kind of driving do you do?  If you are rough on a car, you could end up paying thousands of dollars for excessive wear and tear, which can be as simple as scratches and dents.

Notice I said transportation needs, not wants.  Not that you can’t have what you want, just be honest with yourself.  Leasing a car almost always costs more over the long run.  Do you love the new car feeling?  Is it worth never-ending payments?

Maybe the monthly payment for a car loan simply isn’t affordable.  You need safe, reliable transportation to get to work, pick up the baby at daycare, drop off your daughter at soccer practice, and home to make dinner before bedtime.   The reality of your life can dictate your choice.

Two:  Understand the business transaction

Leasing is a complicated transaction, compared to buying.  When you buy, you pick out a car, get a loan for ‘such and such’ interest, and make your 4 to 7 years of monthly payments.  And you’re done.  The car is yours to love and maintain until rust do you part.

In a leasing transaction, you are essentially paying for the estimated depreciation of the car—how much value will that car have lost by the end of the lease?  And, that depends on where you are starting:

• What is the price of the vehicle?
• How well does the make and model hold its value?
• How much is the Gap Insurance?
• If the car is totaled during the lease, your auto insurance will cover the damages, but you still have the contractual monthly lease payment.  Gap insurance covers you in that event, which is an Early Termination of the lease agreement.
• Other add-ons, like additional miles or adding in the remaining balance of your current car loan?
• Any subtractions, like a down payment or trade in?

This adds up to the starting cost.  The leasing company then subtracts the estimated value of the car at the end of the lease.  The result is the amount you are financing.  Just like buying a car, you have some negotiating power over the price of the car.

There are a number of other fees involved in the transaction: down payment, security deposit, early termination fees, and excessive mileage or wear and tear fees. Knowledge is power and you can learn more about the finer details of the leasing transaction searching on line.  Click to read a handy resource from our beloved Attorney General’s office.

Three: Compare leasing vs. buying

Let’s say you buy a new vehicle for $20,000 with no down payment at 6.5% sales tax on a 5 year loan.  For $60 to $100/month more (depending your interest rate) than a lease payment, you can own the car outright after 24 more months of payments.  Cars, can easily last 10 years (mine is 13 years old, no signs of giving up soon.)  You have at least 5 years of NO PAYMENTS.  Multiply $347 (estimated lease payment) by 60 and you’ve saved $20,820!  And, if you really saved it, you could pay cash for your next car!  Buying a certified pre-owned newer car can save you even more, with a monthly payment lower than a lease payment.   Over the long run, buying is a better option financially. 

Of course, cars break down and need parts replaced as they age, just like me.  To be fair, we should factor in maintenance and repairs.  Plus, the time and hassle of getting to the auto shop.  In the end, that might be the tipping point in favor of leasing for you.  For me, my child is grown (no daycare or soccer practice,) my auto shop is close to home, and I can get to work without a car.  Your life may warrant the increased cost of leasing.  It all depends!

Author Mary Ellen Kaluza is a Financial Counselor at LSS Financial Counseling. Call 888.577.2227 if you would like to meet with a financial counselor. We are here to help you get on track financially.

For more vehicle related tips, check out Should I buy a new car or fix my old one? and 8 tips to improve your gas mileage.

Many of our posts have covered how to prepare for a financial emergency or what to do when one comes up. But we haven’t really addressed the post-emergency. So here are tips to get back on track when it happens to you.

Continue crisis budgeting

Crisis budgeting is not just for use during the emergency; you need to continue in that mode for at least a little while after. The longer you can keep expenses at a minimum, the faster you’ll get back on track.

Pay it off

If you had to take out credit to cover an unexpected bill, pay it off as quickly as possible. That’s where crisis budgeting really helps. It will create room in your budget to make that extra debt payment. And hopefully you can make more than the minimum payment to get rid of it faster. The more quickly that debt is gone, the sooner you can get back to budget business as usual.

Plan for non-emergencies

Periodic expenses like veterinary bills and vehicle maintenance are not emergencies, but we often treat them like they are because they’re sporadic. So think of these periodic expenses like they’re monthly expenses. Determine the total you spend on annual expenses and divide by 12. Then set aside that amount monthly so you’re prepared when it’s vet time for your pets.

Have a mini celebration

Once you’re back on track, celebrate with a nice dinner, go get a massage, or just take a day off and relax. Going through a financial emergency or tight financial time can be stressful, but you got through it! They always say it’s not the tough time that defines you, but how you respond to it. So pat yourself on the back for working hard and persevering.

Get saving again

Finally, once you’re back on track, go into savings mode. Save as much as you can for potential future emergencies. The more you save, the better prepared you will be. And the best part is you’ll be less likely to have to rely on credit and accrue debt.

If you got through an emergency, but you’re still trying to pay off credit cards, LSS can help. Call LSS at 888.577.2227 for your FREE financial counseling session or GET STARTED ONLINE. Our counselors will help you create a realistic spending plan and determine your best options for conquering your debt for good.

Author Elaina Johannessen is a Program Director with LSS Financial Counseling.

Are you planning to move soon? Whether it’s to a different state or just a couple miles, moving can be stressful. So read on for great tips to reduce moving-related stress and anxiety.

Moving can be an exciting adventure, especially if you’re heading to your dream home! But it can also be unduly stressful with so many details screaming for attention, not to mention packing up everything you own only to unpack at your final destination. My best advice is to think ahead, pay attention to the small stuff, and give yourself plenty of time. In all honesty, I have not moved in 13 years. But like everything else, things have changed greatly in that time so there is guidance available to make your move go more smoothly.

Start with a planning checklist:

The last time I moved, it was a major operation. This wasn’t just a move across town to a better neighborhood. This was a move across the state with everything we owned so we used a major moving company. Although it did not exist at that time, these days many moving companies offer moving checklists to help you get a handle on what you need to do, and when you need to do it. Such checklists provide a timeline with things you should be thinking about 8 weeks, 4 weeks, and 2 weeks before the big day. By searching online for “moving checklist,” you can find plenty of useful information.

Don’t move too much:

We all collect stuff regardless of whether or not we want to. What I mean by “don’t move too much” is only take what you really need and intend to use. Don’t pack up everything and move it just to purge things when you get there. It makes far more sense to go through your belongings first, donate usable items, and throw or recycle the rest. But do your purging now! My general rule is if an item has sat in the closet for at least a year, I really don’t need it.

Make sure to return library books and movie rentals before they get lost in the shuffle. The same goes for anything similar like items you’ve borrowed from your neighbors. And don’t forget to reclaim anything you lent out.

If you have any items being repaired or serviced (like dry cleaning), retrieve them before the move so you aren’t left wondering “what happened to my favorite little black dress.”

Plan for your pets and plants:

I also seem to collect houseplants and pets. The last time I moved my ficus tree, it was enough of a challenge. Thirteen years later, it is 6 feet tall and nearly as wide.

Keep in mind that most moving companies cannot take your pets or plants along for the ride. Be sure to make appropriate arrangements for them to minimize the stress of a move. Consider boarding your animals or leaving them with a trusted friend to prevent your pets from becoming too confused or anxious. If you take them along, please put your pets someplace safe and secure while all the physical moving takes place and the doors are wide open. Getting lo

st in unfamiliar territory is not how you want to introduce your pets to their new home.

Don’t forget the little things:

There are many other details that need attention when you make a move. Staying current on bills and informing creditors and utility providers of your updated information is essential to keep life flowing smoothly.

1. Change your address with the post office

First things first. Once you know your new address, contact the post office to update your mailing information. Having mail come to the

right place at the right time is key to staying on top of your new life.

2. Get some pre-printed labels

Having pre-printed labels on hand makes the process easier to change your address and send off mail. Keep a few in your handbag or wallet to access easily when you need it. It can take some time to remember a new address on demand.

3. Notify your creditors and subscriptions

Notify all creditors (credit card companies and loan servicers) and banks where you keep your money to update your personal information.  Keeping this information current allows for timely notifications and bill-paying. Do the same with your magazine and newspaper subscriptions so they find their new home too. If necessary, cancel any services or subscriptions you won’t be using once you move.

4. Open new bank accounts

If you are moving to a new city, you may want to open new bank accounts before you move so you can access your money when you need it. As you know, many businesses no longer accept checks or will not accept those from “out-of-towners.”

At moving time, I always feel charged up but also a touch of dread at pulling it all together on time. But with advance preparation and help from the whole family, your next move may be just a walk in the park!

For more helpful tips, read How to avoid being broke all summer and Rejuvenate without breaking the bank.

As a nonprofit, LSS Financial Counseling offers free financial counseling sessions. Our goal is to empower people to conquer their debt, build savings, and achieve financial stability.

Written by Barbara Miller

Let’s get this out of the way up front: my finances aren’t perfect. I had minimal student loans after undergrad. I started at a community college and then transferred to Hamline University, where I graduated. But years down the road I decided to earn my master’s degree. While it was a huge accomplishment and I’m proud of it, that’s where the bulk of my student loans came from. About 2 years ago I completed my master’s and I’m still making payments. I also have a mortgage, which I’ll be making payments on…well for a while. The main point though is even though I’m not completely debt-free, I’m able to live comfortably while contributing to both savings and retirement. With that said, here are some specifics on why financial health matters to me:

My relationship

Have you ever had an argument with your partner or spouse about money? I’m not a gambling kind of person, but I’d bet in some way, shape, or form you have at least once. Whether it’s because your car broke down and you didn’t have savings or the other person bought something without talking to you, this happens all the time. In order to mostly avoid these rough times, it’s smart to talk about money often and for both of you to budget together and know where your money goes.

Because my husband and I both know what’s happening with and talk about our finances, we’re able to avoid fighting about money. Not to mention, we have both made conscious efforts to save money for emergencies and for retirement. So if one of our cars breaks down, instead of stressing out and arguing, we’re able to use savings to get the car fixed. Bonus tip: if you plan to spend more than $100 on something, talk to your partner/spouse. It helps!

My health

Paying bills, collection calls, debt, not having enough money, layoffs, etc. causes stress. And as you are likely aware, stress can lead to anxiety, depression, gaining weight, and other health problems.

I have a sedentary job and in the winter in Minnesota I can tell you I should be more active than I am. Plus, I am a food lover, but overall I stay fairly active and I try to eat well so I’d say I’m a pretty healthy person. And it’s partially because I don’t have is a constant worry about finances. My job is steady and I am in a good financial position. So even though I might get stressed out a little from time to time, I’m blessed that I don’t have constant money worries.

My job

According to a recently released paper by CFSI, 1 in 3 workers say that “issues with personal finances have been a distraction at work.” As I said, being financially stable I don’t have that distraction at work, which allows me to be fully present and do my job well. In my case, I feel lucky that I’m in the financial services field. Without this experience, I wouldn’t put as much focus on maintaining financial stability. Plus, part of my job is helping others learn about and improve their finances which is satisfying for me.

My life

I remember vividly when I was 21 and my car broke down; I immediately started crying because I didn’t know what I was going to do. Luckily, I had a support network back then and my parents loaned me the money to fix my car. I did not want to borrow money from them; it was only a few hundred dollars…which I paid back. It could have been a whole lot worse, but being so young it stressed me out. That wasn’t the only financial bump in the road I’ve had in my life. And I am not the most calm person when emergencies happen. (However, I really should react better because I do have a safety net and good insurance in case something comes up.)

These are just a handful of areas in my life that I brought up. But the truth is money and finances affect every aspect of our lives.

So why does financial health matter to me? Because I would not be as happy worrying about money all the time. So financial health gives me the freedom to enjoy my life.

Author Elaina Johannessen is a Program Director with LSS Financial Counseling.

It’s important for everyone to think about retirement…and it turns out it’s especially crucial for women. That’s why this week we’re sharing this post from America Saves.

Why do women need to save more?

So how do you prepare for retirement and make a plan?

Steps to Take

1. Find your Social Security benefits statement

This statement comes three days before your birthday. Remember that Social Security is intended as the foundation for retirement; right now it replaces about 40 percent of an average earner’s wages. The problem is that too many women rely on it as their primary or only source of retirement income.

2. Review your retirement plan statement

3. Open up an Individual Retirement Account

One More Factor to Consider

Doing the Math

I have a credit card that I use every once in a while. This particular credit card company (that shall remain nameless) sent me an email this week explaining four major perks of having this credit card. They even stated that my card is a “powerful financial tool”. Credit cards definitely come in handy sometimes, i.e. for renting a car, earning rewards, or reserving a hotel room. However, there are things that you should never use your credit card for (keep reading). Here are the 4 “perks” this company promoted:

1. Automatic bill payments

   This is a good one. Setting up automatic payments is a great idea to help take away the stress of paying bills. When you set it up, you no longer have to worry about missing or making late payments. Two things, though: make sure you have enough funds to cover those automatic charges and don’t forget to pay off those expenses on your card each month and on time. Because if you start accruing interest and late fees, then using your card for automatic bill payments is not a good idea.

2. Track expenses

   This is another good one. Some credit card companies will automatically track your usage and separate everything into categories, saving you time from tracking expenses on your own. Tracking expenses is a good thing to do so you know where your money is going and you can make changes as needed.

3. Covering emergencies and other unplanned expenses

   No. Just NO! This made me so angry knowing they’re encouraging me and countless others to use my credit card as a back-up plan in case of financial emergency. Charging for emergencies and then hoping you can pay it back later is a recipe for disaster. It’s a quick way to bust your budget, add stress to your life, and cause you to worry about making credit card payments (likely for years to come…not to mention the added interest).

4. Funding large expenses, such as home improvements or vacations

   No, no, no. Home improvements take time and planning so if you can’t afford it now, wait until you can. And if it’s a necessity and the time comes to get the project done, if you don’t have quite enough money, look into a home improvement loan to finance part of the project with your local financial institution. With good credit it’s likely you will get a much better interest rate than your credit card offers.

   Regarding vacations, some people might say “life is short, take the trip.” However, before making that decision read Should you go on vacation if you are in debt? and think about the potential long-term consequences if you end up charging that dream vacation.

As I’ve mentioned in previous blogs, credit cards aren’t always bad as long as you use them wisely. Using credit cards wisely does not mean charging vacations or using your credit cards for emergencies. Instead, be proactive before crisis strikes and think about what your back-up plan would be if your car broke down or you had a reduction in income. For more suggestions, read Using Crisis Budgeting During Tight Financial Times, Ideas to Balance Your Budget Without Increasing Income, and Ideas for Increasing Income. These tips don’t have to be used just during an emergency; use them now so that you can build up emergency savings and gain peace of mind.

If you have credit card balances that seem to be barely reducing, a Debt Management Plan may be a great option for you. To find out if it is, schedule your FREE financial counseling session with a certified financial counselor with LSS. Call us at 888.577.2227 for a phone or in-person session or click to GET STARTED ONLINE. Take action today to conquer your debt!

Author Elaina Johannessen is a Program Director with LSS Financial Counseling.

It’s not January, but we’re flashing back this Friday to Shannon’s post from a few years back about under-earning. If some or all of the characteristics below apply to you, you may be an underearner. 

We survived 2012 and the New Year is upon us! There is something exciting about a new year…a fresh start! I did a little research and found that according to the University of Scranton, 45% of Americans make New Year’s resolutions and the 3rd most popular resolution is to spend less and save more. (Number 1 and 2 are lose weight and get organized.) So simple right. Nope. Figuring out the right combination of spending less and saving can be nearly impossible for some people. And only 8% of people achieve their resolutions. Let us help you fall into that 8% so you are not making the same resolution next year.

First, ask yourself these questions

Do you have a high tolerance for low pay? Are you constantly finding yourself thinking about money? Do you earn less than your potential despite your need or desire to do otherwise? If so, you may be an underearner and all the budgeting in the world may not help you until you address the underlying issues that are holding you back.

Many of my financial counseling clients come to see me because of issues that have evolved due to overspending. Overspending can lead to major troubles such as overwhelming debt, strife in relationships, and ill-health due to stress. Several posts on this blog have discussed how to make changes to your spending so that you can live within your means.  Sometimes it may even be recommended that you earn more through a second job or a new job with higher pay.  These are budgeting issues and strategies, and are focused on getting your outer-financial life under control.  Very important, but what if the problem is not overspending, but underearning?

Underearning is different than having a budget that is out of balance, or not making enough money. Underearning is a pattern of behavior and thinking that holds you back from having the life you want: holds you back from achieving “financial independence” in which you have the resources you need to live a satisfying and comfortable life: the resources to accomplish your dreams and goals.

According to Barbara Stanny, who wrote the book “Overcoming Underearning”, the definition of an underearner is one who earns less than his/her potential despite his/her need or desire to do otherwise. It is different than “voluntary simplicity” which is a conscious choice to live on less in order to have a simpler life. It is different than being a “mindful low-earner”, someone who enjoys what he/she does because it feeds his/her soul and also provides adequate income. No, underearning is a condition of deprivation in which physical and emotional needs are not being met. It is rarely a conscious choice, but many people I meet with are trapped in this mindset.

Are you an underearner?  Below are the top 10 traits of underearning. How many apply to you?

Underearners feel trapped

Do you feel stuck? As if you have no control over your life? Underearners will justify, defend and rationalize their situation so that they don’t have to look at their options or make changes.

Underearners give their power away

Do you project your power “out there”? This can come in the form of “if only” statements like, “If only I’d win the lottery”, “If only Prince Charming would come”, “If only the system weren’t rigged”, “if only my job paid more.” These thoughts may be stopping you from making choices to change your situation: If the problem is out there, then so is the control to solve it.

Underearners underestimate their worth

Volunteering is great and can be a valuable experience as well as personally rewarding. But if you wish you made more money and are constantly giving away your time, knowledge, skills or experience there is a disconnection between your actions and behaviors.  This can come in the form of self-employed folks offering to do a job for less than it’s worth, new-hires being unwilling to negotiate salary in a new position, or an employee who works off the clock to get the job done.

Underearners crave comfort

Making change is uncomfortable and chronic underearners hate being uncomfortable. So much so that they will often unconsciously sabotage their success to avoid the discomfort. Being successful can make them feel like an imposter who will soon be discovered as “not good enough”. They’d rather stay in their comfort zone than feel that distress.

Underearners are self-saboteurs

Self sabotage can come in so many forms that underearners may not realize they are even doing it. Because they underestimate their worth, they are unable to recognize their successes. Other forms of self-sabotage include procrastinating, job hopping, take on too much or too little. It’s a little like training really hard for a marathon, coming close to the finish line in first place, and stopping to tie your shoe only to see others pass you by and take first place.

Underearners are co-dependent

In a nutshell, co-dependency is when you are preoccupied by someone else’s life. Their needs become your own and often eclipse your true needs. It’s the curse of always putting others first and not taking care of yourself. Co-dependency creates victims – and the victim is usually you.  Caring for others before yourself is a form of self-sabotage and it can destroy careers as well as lives.

Underearners live in financial chaos

Living paycheck to paycheck, struggling to make ends meet, racking up large amounts of debt, and going from one financial crisis to another: the feeling of never getting ahead. Does this sound like you? Many of the folks I work with come into my office exhausted and fed up with working hard and having nothing to show for it. If you are working two jobs, putting in long days and having few-and-far-between days off, and still not getting ahead it may be time to figure out what you can do to achieve financial independence.

Underearners are vague about money and success

Do you know how much money you earn? How much you owe? How much you need? What does success look like for you? Feeling like you have the tools to be “successful” but never being able to quite get “there”, without knowing where “there” is, is a good sign that you could be an underearner.

Underearners are “anti-wealth”

Underearners are ambivalent about wealth and sometimes straight out negative about it and those who have it. This can show up as disliking the wealthy, criticizing those who focus too much on their finances, taking pride in living on a “shoestring budget”, or believing in the “nobility” of poverty.  Sometimes we feel ashamed to admit that money matters to us – we don’t want to seem selfish or greedy. It’s pretty easy to see how this can get in the way of earning enough to achieve financial independence.

Underearners are controlled by fear

As suggested above, underearners may have a great fear of success, and of failure; of being judged; or of being liked or not liked because of their money. They may be afraid of the responsibility of having money so they spend whatever they make, or don’t pay attention to how much they are overspending and building up debt. They may refuse to see the reality of their situation, choosing to avoid making the changes they desperately need to make – staying “comfortably miserable”.

Making change does mean stepping out of your comfort level for sure, and for some of us it is the hardest thing to do. The good news is, even though being an underearner is rarely a conscious choice, many of the conditions and beliefs are self-imposed and therefore each person has the power to change them.  There is both “inner-work” and “outer-work” to be done. If you think you may be an underearner, LSS Financial Counselors can help with the tools to take control of your finances, which is part of the “outer-work.” It’s up to you to make the changes within.

Author Shannon Doyle is a Certified Financial Counselor at LSS Financial Counseling. If you are looking to conquer debt and achieve financial goals, call 888.577.2227 for your free financial counseling session or GET STARTED ONLINE.

Whether you’re trying to save more money for emergencies or retirement or pay off debt, the first expenses that tend to be cut are the fun things. You might cut back on going out with friends, travel, or dining out. It’s the smart thing to do and commendable that you’re willing to make sacrifices, but you should still keep at least a little fun in your budget. It’s hard enough to make those cutbacks, but all work and no play = unhappiness. The good news is there are budget-friendly hobbies so you can still have fun without derailing progress toward your financial goal.

1. Game night or movie night

   Get together with friends/family and play some good old board games or use your phone and find free games to play, like charades. Or grab a movie from Redbox or find one you haven’t seen on your streaming service, like Netflix or Hulu. All you need is a snack and you’re all set.

2. Cooking or baking

   Instead of paying extra for beverages and tip, make your own dinner. Or if it’s a rainy/cold day, bake some cookies or your dessert of choice. Go on Pinterest or Google a recipe you’ve wanted to try and head to the grocery store. And if you have kids, this will give them something to do as well instead of complaining that they’re bored.

3. Hiking, walking, or jogging

   This is the cheapest of them all! Put on some comfortable shoes and head outside for a walk or jog. If you’re feeling adventurous, find some local hiking trails in the woods or near a lake. Bonus: make your dog happy by bringing her/him with.

4. Reading

   While you can spend money on books either at the bookstore or virtually, don’t forget about your local library. Most have the option to rent books electronically now, too. Reading is also a really cheap way to entertain yourself. And the beauty of it is you can pretty much read anywhere…your backyard, living room, the park, the coffee shop, or the beach. Your options are endless.

5. Games, puzzles, or brainteasers

   I’m dating myself a bit but back in the day when I was growing up we didn’t have smart phones or even computers, besides at school. Nowadays there are plenty of free apps and games you can play to keep yourself occupied without spending a dime. However, I suggest mixing it up a little and do some of the other things on this list so that you’re not face down in phone land for hours at a time.

6. Coloring

   Coloring is all the rage lately for adults. And I have to admit, I’ve picked up on this trend, too. I bought a coloring book, a box of crayons, and a box of colored pencils all for about $15 and I’ve had hours of entertainment…and still plenty to go. Full disclosure, it’s actually fun and in my opinion therapeutic. It’s perfect for taking your mind off of the stress of daily life.

There are more things you can do for free or cheap; this is just one list. Check out what’s available in your community by visiting your city or chamber of commerce website.

Just remember that you can spend less and save money while still being able to have some fun.

Author Elaina Johannessen is a Program Director with LSS Financial Counseling. LSS is a Minnesota nonprofit striving to help people conquer their debt and achieve financial stability.

Late Fees

Shipping

Tobacco

Coffee

If you see something on sale in a store do you feel compelled to buy it even though you don’t need it? If so, that might be your financial downfall. This means that you’re spending too much money on an item or service that it’s affecting your ability to save money, build wealth, keep up on expenses, and possibly even causing you to accrue debt. There are endless potential triggers, but here are four common ones:

Promotional Emails

When you make a purchase in a store and give them your email address, you’re signing up for potential trouble. Do you get an email from a department store offering 20% off and then feel like you have to buy it? If so, you need to unsubscribe stat. Better yet, don’t provide your email address in the first place. It might seem awkward at first when the clerk asks you for it, but just say “No, thank you.” I’ve been doing that for year and it gets easier every time.

Coupons/Sales

I have been guilty of this in the past that when I get a coupon that seems like an amazing deal, I need to use it. The problem is I was buying something I didn’t need. Hence…financial downfall. So I’ve stopped using coupons just for the sake of “saving money.” Because in the end I was spending more had I not gotten that coupon. The same thing goes for being in a store and seeing something on sale. As I mentioned, a sale is not a good deal if you’re just buying it because it’s on sale.

Music Apps

Are you shelling out a dollar here, two dollars there or more to download music or play music at the bar? I play music at the bar, too, and I have to limit myself because I am a music freak. However, the world is not going to end if I don’t get to hear Foo Fighters while I’m sitting there. (Even though it would make me happier . ) Regarding downloads, determine if you really need those songs. There are so many music streaming apps now that you can listen for free or pay much less for premium memberships than downloading song after song each month.

Social Media

I’m having deja vu as I write this because I know I’ve talked about this before in a previous blog. It sounds strange, but social media – Facebook, Instagram, etc. – could potentially be your financial downfall. For example, Facebook is smart and knows what you like. So you’re going to see ad after ad from stores or items that you like. Also, seeing what your friends like can do the same thing. When you’re inundated day in and day out with these ads, promotions, or even just pretty pictures, you may find yourself wanting those items, too. So be strong and avoid, hide, unfollow, etc.; do what you have to do to make sure that going on social media doesn’t hurt your finances.

It doesn’t take life-changing moves to save money; just be aware of where your money goes and make small changes whenever you can. For more ways to save money in your daily life, read 6 Budget-Friendly Hobbies.

Author Elaina Johannessen is a Program Director with LSS Financial Counseling. LSS is here to empower people to achieve financial stability and conquer their debt.

Procrastination is putting off doing something until the last minute. In some cases, people can thrive on procrastination, such as meeting a deadline for school or work. However, when it comes to finances, procrastinating can mean extra money out of your pocket. And for some, extra expenses can push their finances over the edge.

Being Disorganized

Being disorganized or having too much clutter in your home makes it hard to know what you actually have. Therefore, you might already own an item, but need to buy another because you can’t find it.

Meal Planning

When you don’t take the time to grocery shop and plan meals, that leads to spending more on take out, delivery, or dining out.

Saving for Emergencies

If you have an income reduction or emergency vet trip, how will you cover that? Without emergency savings you’ll probably have to use credit, causing you to accrue debt. And that means an added on monthly payment that may not be affordable.

Saving for Periodic Expenses

It’s just as important to save for periodic expenses as it is for emergencies. If you’re planning to buy Christmas presents, but haven’t saved up money charging and debt can be the result – not to mention paying way more than the purchase price because of interest charges. Other examples of periodic expenses include clothes/jackets/shoes, vehicle tabs/maintenance, veterinary visits, and home maintenance.

Home or Vehicle Maintenance/Repairs

Ignoring or waiting to do maintenance/repairs on your home or vehicle may result in even more costly repairs down the road. For instance, if you hold off on fixing that leaky roof, that could lead to added on costs for water damage or mold in your home – and still needing fix the roof.

Health

If you have an illness or injury and avoid the doctor, you may find yourself with worsening health and having to miss work. Depending on your benefits, that could be an extremely costly situation if you don’t have paid time off to cover those missed days.

Money and Budgeting

Never avoid opening up mail, checking your account balance, or reviewing your income and expenses. Putting this off may create even worse problems, like spending more than you make, NSF fees, late payments/late fees, lower credit score, and debt.

Retirement

If you don’t want to work indefinitely, don’t put off saving for retirement until it’s too late. Save what you can when you can, for instance tax refunds and taking advantage of retirement plans/match programs from your employer.

We all procrastinate at times, but when it starts to create financial problems and cost you money, it’s time to stop procrastinating and start being proactive.

If you already have balances on your credit cards from previous purchases, there’s good news. LSS Financial Counseling offers FREE sessions with an experienced financial counselor who will work with you on creating a realistic budget and provide your best options for paying off those cards faster. Call us at 888.577.2227 for your free session or GET STARTED ONLINE at your convenience.

Author Elaina Johannessen is a Program Director with LSS Financial Counseling.

I enjoy shopping and spending money sometimes; the act of it (as long as it’s quick), getting new things, and wearing or enjoying those new things. But sometimes I just don’t have the money to spend because of whatever happens to be going on in my life. Maybe I went to a concert, a birthday party, and traveled to spend time with family within a couple of weeks.

While I live comfortably, I don’t have the luxury of unlimited fun money. So I have to be smart with my money and sometimes avoid spending so that I can afford all of my living expenses and contribute to savings. Whether you need to temporarily cut back on spending or are trying to achieve a savings goal or pay off debt, here’s a list of productive things to do instead of spending money.

Here are 25 ideas to start with:

1. Meal prep for the next week
2. Go for a walk/jog, do yoga, or other exercise
3. Take a bath
4. Read a book
5. Color
6. Invite friends over
7. Create and/or review your budget
8. Write down financial or other goals
9. Call a relative or friend you haven’t talked to in a while
10. Do a puzzle or brainteaser
11. Organize your closets
12. Declutter and sell items you don’t need
13. Volunteer at a local food shelf, animal shelter, etc.
14. Clean out your refrigerator
15. Bake something you can share with your co-workers or neighbors
16. Pull your credit report from AnnualCreditReport.com (for free) and review for errors
17. Shop around for better auto insurance
18. Update your resume
19. Pack your lunch for the next day
20. Make a to-do list for the next week or month
21. Help your child with homework or do an art project together
22. Write someone a letter and mail it (Who doesn’t love getting mail that isn’t a bill or junk mail?!)
23. Set up automatic deposits into a savings account from your paycheck
24. Declutter your inbox and unsubscribe from emails you don’t need
25. Switch to paperless billing and set up automatic payments for any you haven’t set up yet

Even though items listed above aren’t necessarily the most fun things to do, you will either feel productive and even maybe more relaxed afterward. Plus, if you have the itch to spend money, staying busy always helps.

Author Elaina Johannessen is a Program Director with LSS Financial Counseling.

Have you ever been in a position where you’re invited to go do something, but you can’t afford it? So you make up an excuse that you’re sick or tired or can’t find a sitter. While your friends may buy the reason you can’t go, it really doesn’t help anything. Because the next time you can’t afford to do something, you’ll probably have to make up an excuse again.

But it doesn’t have to be that way. While you don’t need to tell everyone your entire financial situation, it doesn’t hurt to be honest with those closest to you. And you can keep it high level with friends that you aren’t super close with. Here are some tips to avoid that perpetual excuse-making situation:

1. Be Honest With Them

   Let your friends know that you would love to go, but that it’s just not the right timing for your budget right now. Depending on how much you are comfortable sharing, you could tell them that you have a financial goal you’re trying to achieve. If you can, do it because moving forward no more lame excuses will be necessary. They’ll know if you can’t go it’s because you have other financial priorities and it has nothing to do with not wanting to go. Chances are you’re not the only one that wants to cut back on some spending. Plus, you might even motivate a friend to work on a goal…and maybe you can even support each other in your efforts!

2. Plan in Advance and Save Up

   Once your friends know about your goal, ask them to give you advance notice – especially for the important events (birthday parties, concerts, trips, or other celebrations) you don’t want to miss. Then, work on saving up a little bit each paycheck. If it’s always seems to be one of those last minute situations, start saving whether or not you know about an upcoming event. That way, you’ll have money set aside…for instance in case Fall 2018 concert tickets go on sale a year beforehand. (That example is from personal experience. )

3. Suggest Cheaper Alternatives

   Going out can be insanely expensive…from dinner and drinks to transportation you could end up spending $50-75 (or more depending on where you live) for just one night. So instead, suggest other ideas instead of hitting the town every time. Have a [insert your favorite at-home activity here] night. You could have a game night, watch movies, have a spa night, etc. Make it a BYOB/potluck style night or make dinner or appetizers together. This is a great way to save money and still have a great time. Bonus Tip: make it a cell-phone free evening so you actually hang out with each other.

4. Don’t Forget Your Goal(s)

   Yes, you may miss out on some fun, but keep your goal and the big picture in mind. If you’re working on paying off debt, think how amazing it will feel to be debt-free and to be able to save and have more financial freedom. If you’re working on building emergency savings, envision a future where you don’t have to rely on credit if your car breaks down or another unexpected expense pops up. As they say, keep your eyes on the prize.

Remember: achieving your financial goals will allow you to have stress-free fun in the near future!

Author Elaina Johannessen is a Program Director with LSS Financial Counseling.

My 10th anniversary with LSS Financial counseling is this month. Over these last 10 years I’ve provided counseling, supervised and observed counselors, and learned so much about personal finance. I’ve also come to realize that people have different money personalities. Below are 5 common money personalities…do you identify with any or do you recognize someone that fits a certain category?

The Saver

The saver typically loves saving money and finding bargains. The saver works hard to spend less; not to mention they want to share their ideas with friends and family so they can save money, too. Often the saver is quite frugal, finding ways to cut costs and will generally avoid spending money. Because of this, some savers can be on the cheap side, waiting for others to pick up the tab first.

• It’s unlikely for savers to have financial problems unless there are extreme circumstances, such as a long-term job/income loss or major medical issues.
• Savers should be aware of the fact that they may be cheap sometimes. That will help avoid relationship issues or awkwardness with friends and family. I look at it this way: when hanging out with friends and someone else always pays the bill or brings the food/beverages, just make sure you take your turn, too.

The Spender

Then there’s the spender. This type of money personality enjoys the act of spending money – either for her/himself or buying for others. The cost of the item doesn’t matter, again it’s just the actual act of spending.It’s not always a bad thing to spend, but spenders need to make sure to live within their means and be extra careful about overspending and opening and using credit cards. Spenders need to find a way to ensure they don’t overspend. Create a budget and set spending limits after paying bills and contributing to savings. For example, if you earn $3,000/month (net) and bills/savings total $2,600 then you have $400 to spend on other things the rest of the month. Once that $400 is gone, you’re done spending.

• Spenders should work to find balance and save money for emergencies and for retirement instead of spending every penny they earn. For instance, take advantage of retirement plans and employer match savings if offered.

The Security Seeker

Security seekers play it safe and are good planners. Like savers, they like saving money and their main goal is to make sure they have a safety net in case of a financial bump in the road. So they won’t touch their savings unless it’s absolutely needed.

• Security seekers need to find balance only in the opposite way of the spender. It’s okay to spend money sometimes and have a little fun.

The Risk Taker

The risk taker does exactly what it sounds like – they’ll take investment risks in the hopes of a big payoff in the end. Depending on investments, this type of person can end up either rich or broke.

• Risk takers need to remember that balance is the key. You can still take risks, but need to play it safe sometimes (like setting aside money monthly into savings)…and don’t put all your eggs in one basket (diversify your investments).

The Avoider

Just as you’d expect, the avoider doesn’t think about money or finances. They’re not checking bank statements closely and are not thinking about building up savings. Because of this, a financial crisis may happen if an unexpected expense comes up.

• If the avoider has steady income, they’ll likely be fine for a long time, but need to find easy ways to make dealing with finances easier. For instance, setting up an automatic deposit into savings from every paycheck. That way, it’s easy to save and once it’s set up, there’s no effort needed and you’ll have money in savings in case of an emergency.

I want to make it clear that NONE of these money personality types are bad. Regardless which category you fall into, be aware of your habits and attitude toward money so you can be financially stable and prepared for the future.

Author Elaina Johannessen is a Program Director with LSS Financial Counseling.